One of the biggest names in the semiconductor and chipmaking business, the Netherlands-based ASML saw its fortunes dilapidated at the equity markets on October 15.
ASML Cuts Forecast
The company shares collapsed by over 15 per cent in the intraday trade on Tuesday. This mammoth decline came to pass after the semiconductor giant cut its sales forecast, leading to an absolute sell-off frenzy.
A slowdown in the advanced chip sector, which ASML pioneers, that was earlier boosted by the AI boom has been around the corner for a few quarters now. In addition, an apparent decline in demand and subsequent sale of non-AI-related chips have also contributed to the woes of the Amsterdam-based company.
Chip Slowdown
This appears to have had a relay effect on major American chip makers as well. The makers of Blackwell chips, Nvidia, which was also once riding high on the AI wave, has had to take a backseat. Its American rival also appears to taken a hit. Both companies saw their shares declining significantly on Tuesday.
ASML Shares Drown In Red
When we look at the shares of ASML, the company shares that opened at EUR 795.70 stumbled as though tumbling from the top of a hill. By the end of the day's trade on Tuesday, the company shares dropped to EUR 668.10.
This was the result of a mammoth decline of EUR 123.90 or a colossal 15.64 per cent in value. This also comes a time when we are also looking at the quarterly earnings for the company.
Talking about the shares of Nvidia and its rival AMD, they also felt the ripple effect of the developments from across the Atlantic.
Nvidia Shares Follow Suit
After a decent start to the day, the Jensen Huang-led company shares plummeted and thereafter knew no other way but down.
By the end of the day's trade, the company shares that opened at USD 137.87 dropped to USD 131.84, powered by a decline of 4.52 per cent or USD 6.24.
AMD
Advanced Micro Devices, Inc. or simply AMD, was no different, as the shares of the company faired worse than Nvidia.
The shares of the company dipped by a significant 5.22 per cent or USD 8.63. This took the overall dip to USD 156.64 per piece by the end of the day's trade.
